How to Transfer a Car Title in 2022



What is a car title?

Car titles act as proof for ownership of a vehicle. In most cases, titles contain specific information pertaining to the vehicle and the owner. This information will include the year, make and model of the vehicle, the VIN number and the mileage of the car. It will also have the owner’s information such as first and last name along with their address. If there is a lien on the vehicle, then the lien holder’s information will also be present. Car titles vary from state to state so the information on the title might be slightly different in each state. If you ever buy or sell a vehicle, you will need to transfer the title. In this article, we will examine what you need to know about a title transfer and the process involved in it.

How to transfer car title in 2022

Transferring a Car Title:

The transferring of a title of any sort involves both parties, the seller and the buyer. Firstly, the seller will have to release the rights to ownership by signing in the correct area on the title. The buyer will then take the title to their local Department of Motor Vehicles and request a new title be made with the correct information. The state will issue a new title with the new owner’s information on it. Some states are beginning to move to electronic titles, so a fee might be administered if you request a paper hard copy. 


Buying/Selling Through a Dealership:

When purchasing a new or used car from a dealership, the dealer will handle the title transfer and all necessary paperwork along with it. The title and registration fees which you would normally pay are the same however you pay them to the dealership in the form of a “doc fee” and then they will pay the state on your behalf. If you took out a loan for the purchase of a vehicle from the dealer, the title will go to the lender and they will hold it until you pay off the loan completely. Once you have paid off your loan in full, the lender (the bank) will send a lien release letter which you can use to get a new title without the lien holder information on it.

Buying/Selling With a Private Party:

When working with a private individual, it is important to create a document called a bill of sale. This document acts as proof for selling/buying a car; it is basically the record of the transaction. The bill of sale will have information such as the amount of the sale, the date, buyer/seller name and address, and maybe the odometer reading. Although uncommon, some states require the seller to sign the car title using a notary public service. This can also be done at the Department of Motor Vehicles as well. Buyers sign in the designated area on the title with their name, date of birth and address. It is the buyers responsibility to disclose if the purchase is being made with a loan so that the newly issued title can show the lien holder. After that is complete, the title transfer and registration forms will need to be filled out with all of the required information. One will need to pay some fees at this point to the state. It is crucial to make sure that all information is correct before submitting it to the state, otherwise you will have to file another correction form after to have the correct information on the title.


Keep in mind that every state is different, and the regulations will vary depending on the state. Transferring a car title in Illinois will be probably a little different than transferring a car title in Florida. If you have any specific question about the process, your local DMV will have the right answers for you. You can call them or go in person and they will be more than willing to help you make your title transfer done correctly.      





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